§514A-16 - Liens against apartments; removal from lien; effect of part payment.
§514A-16 Liens against apartments; removal
from lien; effect of part payment. (a) Subsequent to substantial
completion of the project and the recordation of the first conveyance or lease
of an apartment in the project to a bona fide purchaser, and thereafter while
the property remains the subject of a condominium property regime, no lien
shall arise or be created against the common elements. Following such
completion and first recordation, liens may arise or be created only against
the several apartments and their respective common interests.
During such period while
(1) The developer retains ownership of any apartment
other than:
(A) The mere reservation of legal title under
an agreement of sale to a bona fide purchaser; and
(B) The apartment in respect of which a
binding contract of sale has been entered into with a bona fide purchaser but
which has not, at the time of filing of the application of a mechanic's lien,
closed escrow; or
(2) Any other person retains ownership of any
apartment prior to the first conveyance or lease of such apartment to a bona
fide purchaser,
mechanics' and materialmen's liens may arise or be
created for labor or material furnished in project construction performed
before the completion of construction, and such liens shall affect every
apartment and its respective common interests so retained until released or
until the period for making application for such liens has expired without any
such application having been filed.
(b) Labor performed on or materials furnished
to an apartment shall not be the basis of a lien pursuant to part II of chapter
507 against the apartment of any apartment owner not expressly consenting to or
requesting the same, except that express consent shall be deemed to be given by
the owner of any apartment in the case of emergency repairs thereto. No labor
performed on or materials furnished to the common elements shall be the basis
of a lien thereon. [L 1977, c 98, pt of §2 and c 193, §8; am L 1988, c 65, §2;
am L 1989, c 146, §1]
Case Notes
Mechanics' and materialmen's liens discussed. 50 H. 540, 445
P.2d 109.
Hawaii Legal Reporter Citations
Not applicable against common elements. 77-1 HLR 77-199.